Healthcare plans for 2012

   ‘Tis the season…for open enrollment in healthcare, from company benefits to Medicare. Unfortunately, most of us won’t be getting many sweets in our stockings this year. What we can expect to get is higher deductibles, higher out-of-pocket costs that will surely continue rising, fewer options in doctors or networks, more aggravation and longer waits.

   The impetus behind increased costs to employees is simple: increased costs across the board for everyone. Employers can not absorb the increased costs in health care. They are being pushed into a corner with expenses. The only viable solution is to pass on the costs and encourage their employees to manage their own health care in better ways.

   Some firms may offer financial incentives to stop smoking, start exercising, lose weight, what ever it takes to drop the increased risks of unhealthy living. If you are lucky enough to work for one of these companies, by all means, take advantage of everything you can to improve your wellbeing. After all, your boss will not be caring for you if you become unable to work from illness, you will have to manage yourself. You will be paying the costs for the consequences of living a sloppy lifestyle. To avoid calamity and unmanageable bills, take action now to prevent more problems. This is the message your employer will be sending.

   Some people were caught flat-footed when employers changed to high deductibles mid-year. It is very difficult for a family to swallow a deduction of several thousand dollars. This reminds me of when my children were young and we had to HMO in our town. Every medical visit, prescription, and procedure an required upfront payment and then we had to wait for the reimbursement of 80% or less. Strict budgeting is necessary for families with young children who might see a doctor more frequently than someone who is older. This is a system requiring tough choices for families. And for employers.

   People have to pay more attention to choosing their health care plans and reading the information on how the plan works. You might want vision insurance, but if your premiums are lower without it, leave it on the table. Unless you have serious eye problems, you can get an eye exam and glasses at discount retail places such as Eye Masters for less money than the premiums on vision insurance in most cases. This is not true for all people, but it behooves you to check it out. Do not waste precious premiums dollars on something you can buy for less elsewhere. The same is true of prescriptions: ask for generics, join a prescription plan at your pharmacy, or use a discount pharmacy. Be a smart consumer with health care!

   The news will continue to get worse. You can expect prices to rise next year. You will have to find out how you can use Flexible Spending Accounts or Health Savings Accounts to complement a higher deductible. Expect fewer options in the future. If you are wondering why the squeeze, consider the following. If employers are pummeled by health care costs, they might decide to eliminate health care benefits for all employees. This could be especially true of small businesses that lack sufficient income to offset rising costs. The new health care rules require everyone to obtain health care insurance. If employees can not obtain health benefits at work, they will have to look elsewhere. Cynics might say this is a great way to force people into a healthcare system under government control. If it looks like a duck and quacks like a duck…

 Have a terrific day!

Patricia